Pilbara Gold Project – Unlocking Shareholder Value “1.4Moz and Growing” ASX Announcement 15 November 2018 ASX Code DEG FRA Code WKN 633879 ABN 65 094 206 292 DIRECTORS/MANAGEMENT Simon Lill Executive Chairman Andy Beckwith Technical Director & Operations Manager Brett Lambert Non-executive Director Steve Morris Non-executive Director Patrick Holywell Craig Nelmes Joint Company Secretary Phil Tornatora Exploration Manager CONTACT DETAILS Principal & Registered Office Suites 24-26, Level 3 22 Railway Road Subiaco WA 6008 PO Box 2023 Subiaco WA 6904 www.degreymining.com.au [email protected]T +61 8 6117 9328 F +61 8 6117 9330 Diamond drilling confirms high grade Lithium, Caesium and Tantalum at King Col ➢ King Col diamond core results confirm earlier high grade lithium results: KDD002 11.9m @ 2.43% Li2O within 27.3m @ 1.14% Li2O from 12.7m Twin of RC hole KRC012 (17m @ 2.55% Li2O from 13m). KDD001 11.5m @ 0.64% Li2O from 27m, Twin of RC hole KRC011 (8m @ 1.00% Li2O from 27m). ➢ Caesium mineralisation in the form of the very rare and high value pollucite mineral (partially oxidised) that forms in extremely differentiated LCT pegmatites. Results supports the previously reported discovery of 1m @ 8.63% in earlier RC drilling. 0.9m @ 1.26% Cs2O from 30.6m in KDD001 and 1.0m @ 1.63% Cs2O from 21.5m in KDD002 Pollucite results occur in 2 holes 60m apart warrants further follow-up ➢ New high grade Tantalum mineralisation includes: 4.3m @ 675ppm Ta2O5 from 34.2m in KDD001 and 5.9m @ 468ppm Ta2O5 from 21.5m in KDD002. ➢ Petalite, lepidolite, spodumene and pollucite identified in geological logging with petrology underway to verify. ➢ Drill core sent to the WA Geological Survey core library for Hylogger spectral scanning to determine mineralogy and distribution as part of the EIS project funding.
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Deg King Col Diamond Results Lodgment - De Grey Mining
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Pilbara Gold Project – Unlocking Shareholder Value
Diamond drilling confirms high grade Lithium, Caesium and Tantalum at King Col
➢ King Col diamond core results confirm earlier high grade lithium results:
KDD002 11.9m @ 2.43% Li2O
within 27.3m @ 1.14% Li2O from 12.7m
Twin of RC hole KRC012 (17m @ 2.55% Li2O from 13m).
KDD001 11.5m @ 0.64% Li2O from 27m,
Twin of RC hole KRC011 (8m @ 1.00% Li2O from 27m).
➢ Caesium mineralisation in the form of the very rare and high value pollucite mineral (partially oxidised) that forms in extremely differentiated LCT pegmatites. Results supports the previously reported discovery of 1m @ 8.63% in earlier RC drilling.
0.9m @ 1.26% Cs2O from 30.6m in KDD001 and
1.0m @ 1.63% Cs2O from 21.5m in KDD002
Pollucite results occur in 2 holes 60m apart warrants further follow-up
➢ New high grade Tantalum mineralisation includes:
4.3m @ 675ppm Ta2O5 from 34.2m in KDD001 and
5.9m @ 468ppm Ta2O5 from 21.5m in KDD002.
➢ Petalite, lepidolite, spodumene and pollucite identified in geological logging with petrology underway to verify.
➢ Drill core sent to the WA Geological Survey core library for Hylogger spectral scanning to determine mineralogy and distribution as part of the EIS project funding.
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De Grey Mining Ltd (ASX: DEG, “De Grey” “Company”) is pleased to announce results from the first two diamond holes drilled at the King Col Pegmatite prospect. This work is partially funded under the WA Government’s Exploration Incentive Scheme (EIS) following the Company’s successful application for drilling co-funding.
Background
The King Col Pegmatite is located on De Grey’s 100% owned E45/2533, located approximately 50km south of Port Hedland, 35km north of the world class Pilgangoora Lithium-Tantalum Mine and 45km from the Wodgina Lithium Mine. The Tabba Tabba Tantalum Mine is located 20km away and within the same greenstone belt that hosts the King Col Pegmatite (Figure 1).
In October 2017, a limited scout RC drilling program of 22 shallow holes was undertaken to test portions of the previously defined 2km long lithium-in-soil anomaly. This drilling successfully intersected potentially economic widths of lithium rich mineralisation, including 17m @ 2.55% Li2O from 13m depth and 8m @ 1.0% Li2O from 27m depth. Previous petrological studies have confirmed the presence of the lithium-bearing mineral spodumene, in addition to petalite and lepidolite. Caesium rich mineralisation was also noted with 1m @ 8.63% Cs2O% with pollucite identified in petrological thin section. Soil sampling in early 2018 has extended the overall lithium-related anomaly to over 7km in strike length.
Figure 1 King Col Location Plan
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Diamond Drilling Program
Two diamond holes were completed at the south-western end of the 7.5km trend for a total of 132.4m. The holes were designed to twin existing RC holes KRC011 and KRC012 (Figure 2) in order to confirm lithium, tantalum and caesium grades and in particular to determine distribution and percentages of lithium bearing minerals.
Diamond drilling confirmed the previous RC drilling results (1m @ 8.63% Cs2O in KRC011), with
KDD001 returning 11.5m @ 0.64% Li2O from 27m,
twinning RC hole KRC011 (8m @ 1.00% Li2O from 27m).
KDD002 returned 27.3m @ 1.14% Li2O from 12.7m (including 11.9m @ 2.43% Li2O)
twinning RC hole KRC012 (17m @ 2.55% Li2O from 13m).
Geological logging has identified lithium bearing minerals including petalite, spodumene and lepidolite. Detailed petrological analysis is ongoing to assist understanding of mineralogy and lithium mineral distribution. The drill core has been sent to the WA Geological Survey core library and will undergo Hylogger spectral scanning as part of the EIS project funding.
In addition to lithium, intercepts of anomalous caesium and high grade tantalum were also returned in the recent diamond holes. Recent diamond holes returned 0.9m @ 1.26% Cs2O from 30.6m in KDD001 and 1m @ 1.63% Cs2O from 21.5m in KDD002. The shallow depth of the pegmatite means it is partly weathered so while pollucite was identified in drill core (to be confirmed by petrology) the partially weathering may have resulted in some depletion of caesium near surface and therefore lower grades than expected in fresh pollucite. The caesium rich mineral Pollucite is very rare and only found in a handful of locations around the world. The main use of pollucite is in the production of high value caesium formate brines for use in the oil and gas industry. Pollucite is associated with highly evolved and complex pegmatites. There are only three commercially sized deposits in the world, Tanco (Canada), Bikita (Zimbabwe) and the Sinclair deposit (Western Australia), currently being developed by Pioneer Resources Limited (“Pioneer”). The Sinclair deposit has a resource of 7110t @ 16.4% Cs2O (Pioneer’s ASX Release 8 November 2018).
High grade tantalum was also intersected, including 4.3m @ 675ppm Ta2O5 from 34.2m in KDD001 and 5.9m @ 468ppm Ta2O5 from 21.5m in KDD002.
As previously noted, the presence of spodumene, petalite, lepidolite, tantalum and pollucite clearly show that the King Col pegmatite system is fertile for Lithium-Caesium-Tantalum bearing minerals. LCT pegmatites are typically zoned in both lateral and vertical orientations and further work is required to better understand this zonation and the potential scale of the LCT pegmatite.
Future Program
Exploration activities at King Col are planned to include:
➢ Detailed assessment of mineralogy of the pegmatites including petrology is currently underway, with results expected shortly.
➢ Hylogger spectral scanning of drill core to determine mineralogy and distribution, to be undertaken by the WA Geological Survey as part of EIS funding.
➢ Follow-up drilling to extend Li-Cs-Ta mineralisation, to be undertaken.
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Figure 2 King Col drill collar location plan
KDD001 11.5m @ 0.64% Li2O
Interpreted pegmatites
Drill trace - pegmatite
Drill trace – mafic rocks
200m
KDD002 27.3m @ 1.14% Li2O
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Figure 3 KDD002 14 - 21.1m – Li2O%
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Figure 4 King Col Section 682540E showing comparison between KDD002 and KRC012 results
Inset shows comparison of RC and DD hole twin
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For further information:
Simon Lill (Executive Chairman) or
Andy Beckwith (Technical Director and Operations Manager)
Competent Persons Statement
The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr. Phil Tornatora, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr. Tornatora is an employee of De Grey Mining Limited. Mr. Tornatora has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr. Tornatora consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Material ASX releases previously released
The Company has released all material information that relates to Exploration Results, Mineral Resources and Reserves, Economic Studies and Production for the Pilbara Gold Project on a continuous basis to the ASX and in compliance with JORC 2012. The Company confirms that it is not aware of any new information that materially affects the content of this ASX release. Material ASX releases related to the results reported in this report are listed below:
De Grey confirms spodumene and extends strike length at King Col, 1 March 2018 High Grade Lithium - 17m @ 2.55% Li2O intersected in wide spaced scout drilling, 16 October 2017 Lithium anomaly extended to 2km - remains open for 5 kms to east, 16 January 2017 Soil sampling defines coherent Li2O anomaly at King Col Pegmatite Trend, 1 December 2016
Forward Looking Statements
Statements regarding De Grey’s plans with respect to the mineral properties, resource reviews, programmes, economic studies and future development are forward-looking statements. There can be no assurance that De Grey’s plans for development of its mineral properties will proceed any time in the future. There can also be no assurance that De Grey will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of De Grey’s mineral properties.